When investing, the decision is usually made based on two factors – risk and return. The trade-off between the two factors vary across different classes although the ultimate goal is to balance risks with returns. Interestingly, there are various asset classes to invest in such as debt, equity, commodity and real estate. Of these assets, real estate offers the best combinations of risk and return. However, if you can maximize the returns and minimize the risks of investing in a real estate, will you not do it? And what better way to invest in real estate properties than those located within a business district?
Here are the important things to consider should you invest in one.
1) IT infrastructures and ITeS
ITeS stands for Information Technology-enabled services. There are explicit and underlying benefits that these infrastructures and services provide to the residents. Unquestionably, these factors put convenience on a pedestal, driving other services such as communication, transportation, banking, healthcare, etc. to be better. Can you imagine living or operating a business in a place with no Internet connectivity? Also, the improved IT infrastructures and services add value to the current value of your property. If you decide to sell your property in the future, you can sell it at the highest possible price, citing the availability of Wi-Fi, in-city technologies and more.
2) Financial services
Due to the concentration of commercial activities, banking, insurance and other financial services are highly prioritized in these areas. In fact, the majority of the banking institutions have their headquarters here which are definitely more stable than their branches elsewhere, putting your hard-earned money in any of these institutions is a wise decision. The proximity to the major banks, availability of ATMs and easiness of insuring your property are some of the selling you can use if ever you decide to rent out or sell the property.
3) Commercial establishments
Thriving districts serve as host to world-class hotels, shopping centers, dining areas and fitness centers. Not to mention, the presence of schools, museums, embassies and consulates, international organizations, hospitals, and places of worship. Not just the convenience and accessibility, but this also means that the ambiance, interior and exterior environment and even the quality of stores and services are within arm’s reach. Think of how much time and money you can save going to and from your property to any of these establishments or hopping from one establishment to another. Did you know that a property near a Starbucks could double in value in just 5 years?
4) Security features
Peace of mind is difficult to come by nowadays, but not within these districts. Safety and security of the residents, who are usually high-income earners, businessmen, and expatriates, are emphasized by the local and national government. Thus, the best fire and police and other law enforcement units are assigned here. Investing in real estate means security, so it should be safe for you to walk in the streets any time of the day.
Business districts maintain a high level of investor confidence because of the existence of excellent infrastructures, services, establishments, and features. These are the elements that keep the associated risks of investment at a minimum. These are also the same elements that give investors the highest returns possible since these areas maintain the highest property value that does not depreciate. If ever you are planning to invest in a property then, buying one within a business district is your best bet.
Justin is a Filipino blogger and a freelancer. He currently writes and blogs about Ayala land Inc, the largest property developer in the Philippines, operating prime commercial spaces throughout the country. It is owned by the Ayala Corporation.